Best States for Security Guard, Unarmeds to Start a Home Business

We ranked all 51 states based on licensing requirements, earning potential, LLC costs, and tax burden. Here are the best (and worst) states for security guard, unarmeds.

17 states don't require a license · National median: N/A · Updated 2025

Top 5 Best States

1
Colorado
No license neededMedian: $22.15/hrLLC: $50No services tax
Score

98

2
Michigan
No license neededMedian: $18.33/hrLLC: $50No services tax
Score

98

3
Missouri
No license neededMedian: $19.56/hrLLC: $50No services tax
Score

98

4
Idaho
No license neededMedian: $19.52/hrLLC: $100No services tax
Score

94

5
Indiana
No license neededMedian: $18.06/hrLLC: $100No services tax
Score

94

Full Ranking: All 51 States

#StateLicenseFeeMedian WageLLC CostScore
1ColoradoNo$22.15/hr$5098
2MichiganNo$18.33/hr$5098
3MissouriNo$19.56/hr$5098
4IdahoNo$19.52/hr$10094
5IndianaNo$18.06/hr$10094
6KentuckyNo$17.08/hr$4091
7MaineNo$19.90/hr$17590
8MinnesotaNo$22.12/hr$15590
9NebraskaNo$18.72/hr$11090
10PennsylvaniaNo$18.11/hr$12590
11GeorgiaNo$17.15/hr$10087
12West VirginiaNo$17.89/hr$10087
13MassachusettsNo$21.61/hr$50085
14New HampshireYes$40$21.40/hr$10084
15ArizonaYes$72$18.54/hr$5083
16KansasNo$17.35/hr$16583
17MississippiNo$14.28/hr$5083
18MontanaYes$130$18.41/hr$3583
19New MexicoYes$94$18.58/hr$5083
20South DakotaNo$17.79/hr$15083
21WyomingNo$17.47/hr$10283
22IowaYes$40$17.97/hr$5081
23Rhode IslandYes$5$18.70/hr$15080
24CaliforniaYes$104$21.12/hr$7079
25HawaiiYes$131$20.08/hr$5179
26MarylandYes$66$18.55/hr$10079
27OregonYes$106$21.00/hr$10079
28UtahYes$90$20.40/hr$5479
29VirginiaYes$64$20.89/hr$10079
30OhioYes$40$17.40/hr$9977
31AlaskaYes$98$23.37/hr$25075
32DelawareYes$134$18.12/hr$11075
33IllinoisYes$55$18.57/hr$15075
34New YorkYes$138$20.52/hr$20075
35North DakotaYes$91$19.22/hr$13575
36VermontYes$85$20.58/hr$12575
37WisconsinYes$61$18.80/hr$13075
38North CarolinaYes$46$17.26/hr$12573
39LouisianaYes$78$15.22/hr$10072
40OklahomaYes$131$17.59/hr$10072
41ArkansasYes$76$17.83/hr$5071
42NevadaYes$85$18.44/hr$42570
43New JerseyYes$141$18.62/hr$12570
44WashingtonYes$99$23.08/hr$20070
45District of ColumbiaYes$190$30.35/hr$9969
46AlabamaYes$88$15.01/hr$20068
47FloridaYes$97$17.35/hr$12568
48South CarolinaYes$65$16.74/hr$11068
49ConnecticutYes$228$19.23/hr$12065
50TennesseeYes$105$17.35/hr$30063
51TexasYes$62$16.05/hr$30063

5 Most Challenging States

Texas
Fee: $62$16.05/hr63
Tennessee
Fee: $105$17.35/hr63
Connecticut
Fee: $228$19.23/hr65
South Carolina
Fee: $65$16.74/hr68
Florida
Fee: $97$17.35/hr68

How We Scored Each State

Each state starts with a base score of 50, then we add or subtract points based on:

  • No license required: +20 points (biggest single factor — lower barriers to entry)
  • License fee: −10 for fees over $500, −5 for over $300, +10 for under $50
  • Wages above national median: Up to +15 points for states paying 20%+ above national median
  • LLC formation cost: +8 for states under $50, −5 for states over $300
  • No sales tax on services: +5 points

Data sources: Institute for Justice License to Work 3 (licensing), BLS OEWS May 2024 (wages), state Secretary of State offices (LLC costs). This ranking reflects factors relevant to home-based operators — commercial location costs, local zoning, and cost of living are not included.

Found your state?

Get the full step-by-step guide for starting your home security guard, unarmed business.

View All Security Guard, Unarmed State Guides